E-filing your income tax returns is cheap, convenient and easy

See, filing returns online is really as easy as A, B, C ....Even filling up the form through a tax-filing portal is a smooth process. The website explains each step and computes all the calculations, making the procedure a breeze even for newbies. All you need are the relevant documents, such as Form 16 from your employer, and then replicate the information in the portal. The only question that remains is, how should you choose a tax-filing portal?

ABC of filing online returns

A Register with a tax-filing portal.It will help you choose the correct form and guide you while filling it.

B Review the completed form and submit for e-filing. If you use a digital signature, the process is complete. If you don't want to spend on the signature, you'll get the ITR V acknowledgement by e-mail.

C Print the ITR V and mail it by regular post or speed post to the Centralised Processing Centre at Bangalore. The address is: Income Tax Department- CPC, Post Box No. 1, Electronic City Post Office, Bangalore - 560100, Karnataka.

Register with a tax-filing portal.It will help you choose the correct form and guide you while filling it.

Review the completed form and submit for e-filing. If you use a digital signature, the process is complete. If you don't want to spend on the signature, you'll get the ITR V acknowledgement by e-mail.

Print the ITR V and mail it by regular post or speed post to the Centralised Processing Centre at Bangalore. The address is: Income Tax Department- CPC, Post Box No. 1, Electronic City Post Office, Bangalore - 560100, Karnataka.

The first step is to check whether the portal provides the form that you want. While most offer ITR 1 and ITR 2, few have the others. The next step is to see if the portal accounts for all the sections. For instance, a tax-filing site that we went through did not include the section on carrying forward losses from the previous years.

This is a glaring fault because if you do not include such information in this year's return, you will not be able to do so next year. Most portals usually charge a fee only when you have to submit the returns, so you can go through these and choose the one in which the user interface is the smoothest. A good portal will prompt you to fill up a slot you have missed or ask you to rectify a mistake. This reduces the chances of making errors.

The third and most important step is to go through the site's security and privacy policy. "You must check that the portal encrypts the saved and transmitted data and is protected from hackers. Also, a good portal will not carry advertisements or use the client database to market other financial products, such as insurance," says a senior official at Taxshax.com. To check the authenticity of the portal, you can access the list of e-return intermediaries (ERI) on incometaxindiaefiling.gov.in.

All about Form 16

All salaried employees have to file their income-tax returns by July 31. For tax calculations, it is necessary to have form 16, issued by your employer. Form 16 has details of the tax deducted and the branch of the bank where it is deposited into the central government account. For example, if a TDS of Rs 2,000 was deduced from your April salary, form 16 will have its gives. Form 16 is the final certificate issued by your employer giving details of the salary you have earned and the tax deducted on your behalf and paid to the government.


It is given at the end of the financial year, generally by April 30. If there has been no TDS on your salary, you just get a salary certificate and not the Form 16. FORM 16A AND FORM 16: If you are not a salaried employee and work as a professional for an organisation earning fees, then the certificate that shows TDS details deducted while making payments to you is called Form 16A.

WHAT IF YOU HAVE CHANGED JOBS?

At the end of the year, you need to collect the Form 16 from both your employers as that is the basis on which you would file your returns. When you join a new organisation, you should furnish your TDS details from the previous employer to your current employer. This will help your current employer in deducting tax accordingly. If you do not mention your previous organization details to your new employer, then you are liable to show the total income from both employees and calculate your tax liability accordingly.

WHAT IF YOU CANNOT GET FORM 16 FROM MY PREVIOUS EMPLOYER?

Your best option then is to fill Form 12B and submit it to your new employer. The employer will take into account the previous salary you earned while deducting tax.

DO YOU HAVE TO ATTACH FORM 16 WITH IT RETURNS?

As per the IT department, it is not necessary to attach the original form 16 with your income-tax returns. However, in your interest, you could attach a photo copy of form 16, while retaining the original with you.


WHAT OTHER PARTICULARS SHOULD BE CHECKED IN FORM 16?

The first thing you need to confirm in Form 16 is the PAN number. If it is wrong, you have to ask your employer to rectify it and give you a new Form 16. Besides this, the employer needs to make correction at their end by filing revised return of TDS to credit the TDS proceeds to the correct PAN number.

WHAT IF THERE IS AN ERROR IN FIGURES IN FORM 16?

You need to tally the figures in Form 16 with the tax declaration statement provided by you to your organisation at the beginning of the year. It's possible that the figures mentioned are either wrong, or not considered at all. The result would be that fewer deductions would have been shown, resulting in higher tax liability. You might not have submitted the proofs of all investments, or could have forgotten to submit some bills. If there is an error by the employer, you could request them to rectify it and issue a revised Form 16. If a higher tax has been deducted, you can claim a tax refund while filing your returns.

How to claim refund while filing income tax return

Have you failed to reporting some tax saving investment to your employer or did you make the investment after submitting your investment declaration to the employer? Then there is a possibility of you being eligible for a tax refund.

"A tax refund could be due to the following: tax deduction at source at a rate higher than the actual tax payable; wrong (ie, higher) estimation of income while computing advance tax liability; not reporting all investments to the employer while the employer deducts taxes on salary; and claim of exemption in tax returns," says Sonu Iyer, tax partner, Ernst & Young.

Most companies require employees to declare at the beginning of the financial year their proposed investments for tax exemptions/deductions. House rent and leave travel allowances are the common exemptions that can be claimed, while interest on housing loan, investments in PPF, NSC, ELSS, life insurance premiums, home loan principal repayment, stamp duty/registration fee, and long-term infrastructure bonds come under common deductions. Other deductions include medical insurance premium (section 80D), interest on education loan (section 80E), maintenance of disabled dependent (section 80DD), etc.

"Some employees fail to make the declaration, while some may give the details but fail to provide the relevant documentary proof within the time frame prescribed by the employer. In either case, employees can claim tax exemptions/deductions only while filing tax returns.

This results in a tax refund," says Vaibhav Sankla executive director, Adroit Tax Services. "The deduction on interest on the housing loan, based on the provisional certificate obtained from the housing finance company/bank during the financial year, is reflected in Form 16. For FY 2010-11, since the rates were on the rise, the final certificate would show a higher amount of interest for those who took loan on a variable rate. This, too, can be a reason for a tax refund claim," Sankla says. In the case of retired individuals/senior citizens, banks deduct income-tax at source if they fail to furnish declaration in Form 15G/15H for non-deduction of tax on their interest income. Further, if PAN is not provided, the deduction rate goes up to 20% from 10%.

For non-residents, banks often deduct taxes at 30.9% (or lower as per India's tax treaty with the country they reside in) on the interest earned by NRO accounts. Even tenants of non-resident landlords deduct income tax at 30.9% on the rent paid. Most nonresidents fall in either the 0% or 10% tax slab as their Indian income is limited. This means, nonresidents often claim refund of the excess tax deducted.

Some individuals pay advance tax on the capital gains they expect during the year. This can be adjusted against any capital loss they may incur later in the year. The amount of capital gain could also be lower due to indexation, deductions u/s 54/54EC/54F, incorrect cost calculation etc.

ELIGIBILITY FOR REFUND

"Taxpayers should first calculate their final tax liability in accord-inance with the tax slabs applicable to them. If the total tax liability is less than the taxes paid or deducted during the year, they would be eligible for a tax refund," says Vineet Agarwal, director - tax and regulatory services, KPMG. Ensure tax exemptions and/or deductions are mentioned correctly. In the case of a home loan, for instance, ensure the amount on the final certificate from the housing finance company is the same as in the provisional certificate you submitted to the employer.

CALCULATING REFUND

"For calculating refund, you have to calculate taxes on income after applying the applicable income tax rates. Once you arrive at the total tax payable, deduct all the tax deducted at source and advance taxes and self assessment tax paid (if any). The balance (if negative) is the refund amount," Iyer adds.

REJECTION OF TAX REFUND

The most common reason is incorrect calculation of tax payable by the taxpayer. "Refund can also be rejected if the amount shown as TDS in the returns does not match with the details in the database of the income-tax department," Agarwal of KPMG says. If you have mentioned the PAN or assessment year wrongly, then, unless corrective action is taken, the refund claim will be rejected.

TRACKING REFUND

If you filed returns online, visit tin.tin.nsdl.com/oltas/refundstatuslogin. html to know the refund status. Enter your PAN, select the assessment year and click submit to get the details. You can also send an email to itro@sbi.co.in or refunds@i ncometaxindia.gov.in for refund related queries. If you have filed the returns through a chartered accountant, you can check the refund status by contacting the SBI helpdesk or the aaykar sampark. It would be advisable to follow up with the assessing officer of the jurisdiction where the return was filed to get the correct status.

PROCESSING TIME FOR REFUND

E-filing results in quicker refunds. "Taxpayers should mention the correct bank account number if they want the refund cheque to be deposited in their account. If a taxpayer wants the refund directly credited to the bank account, then he/she should provide the MICR of the bank's branch as well," Sankla says. If you opt to receive the refund by way of cheque, ensure that you mention your permanent address in the tax return form. Else, in case you change the address before receiving the refund, the refund cheque would be returned undelivered to the I-T department. If the cheque is invalid/expired by the time it reaches you, intimate the jurisdictional office and send the cheque back to the refund banker for re-issue.

In cases of e-filing, the refund is received within two to seven months. For offline returns, it often takes anywhere between one and two years. In case you haven't received your tax refund, file an application with the grievance cell or the income-tax ombudsman. "The taxpayer should visit the tax office for follow-up action on the refund and enquire about the reasons for it not being processed. The taxpayer may also approach the assessing officer ('AO') concerned, with necessary documents. However, if no action is taken by the AO, the taxpayer can write to the jurisdictional chief commissioner with copies of the letter/s written to the assessing officer and with a copy of the tax return filed," says Agarwal.

How to make sure your e-return is not rejected

In the previous issue of ET Wealth, we laid out a systematic approach to filing tax returns. However, your return can be rejected if the guidelines laid down by the Income Tax Department are not followed while filing returns, be it physically or online. If you are e-filing and not using the digital signature, you will have to print out the acknowledgement form, ITR V. Here are the things you should keep in mind while using this option.


Printing ITR V

Printing the ITR V form correctly is critical. Avoid using the dot matrix printer if you want your return to be processed faster. This is because the bar code on the ITR V should be clearly visible for quicker processing, and this can be done only by using the ink jet or laser printers. Take the printout in black ink only. If you are sending two returns, don't print them back to back. Use a fresh A4 size sheet to print each time. Perforated paper or of any other size is not acceptable.

Signing

The signature on the form must be clear and legible. For this, use a ball-point pen in blue ink only. "The document that is mailed to the Central Processing Centre (CPC) in Bangalore should be signed in blue ink," says Parizad Sirwalla, executive director, tax, KPMG.

Also, if you are taking photocopies, make sure you send out the original one signed in blue ink. A photocopy of the signature is not accepted. "As per the guidelines issued by the Income Tax Department, the ITR V should carry the signature in ink and should not be a photocopy of the signature," says Sonu Iyer from Ernst & Young.

Sending

"The filing of non-digitally signed returns is completed only when the ITR V reaches the CPC in Bangalore," says Sirwalla. So, make sure that your ITR V reaches the destination within 120 days of e-filing. In case it does not reach CPC Bangalore within the stipulated period, you will have to go through the agony of filing your tax return again. Earlier, you could not send more than one ITR V per envelope, but now, you can include more than one such form. Do not attach other documents, such as photocopies of Form 16 or TDS certificates along with the ITR V. Even annexure documents don't need to be attached. Dispatch it in an envelope that can hold an A4 size paper without folding it.

Other filing errors

Taxpayers often make mistakes that lead to deduction or incorrect calculation of taxes. One of these is not declaring the correct break-up of deductions under Section VIA, which includes tax-saving investments in life and health insurance policies, mutual funds, bank fixed deposits, etc. Iyer points out, "It is essential to have the tax filing details like deductee's PAN details, PAN & TAN of the deductor, total amount paid, total taxes deducted and deposited in Form 16/ Form 26AS."

In case of a change in the residential address, make the necessary alterations in the PAN database since the IT Department refers to it for correspondence. Do not mention bank accounts that are closed or even dormant because refunds are unlikely to reach you in such a case. "The circles in the Sahaj and Sugam forms must be shaded, not ticked," says Ameet Patel, partner at Sudit K Parekh & Co.


No response from CPC

The CPC dispatches an acknowledgement on receiving the ITR V. Ideally, it should reach you within three days. If you don't receive it, consider sending it again. You can send it through regular postal service or speed post. Do not use the courier or deliver it personally. You can call 1800-425-2229 and 080-22546500 from 9 am to 8 pm on working days to check its status. It can also be done online at www.incometaxindiaefiling.gov.in.


E-filing checklist

Avoid copy-pasting information while e-filing.

Take printouts using ink jet or laser printer on A4 size paper in black ink.

Sign on the ITR V acknowledgement form in blue ink only.

Avoid the use of staplers in ITR V.

You can send more than one ITR V form in the same envelope.

Do not attach any other document with the ITR V.

ITR V should only be sent via speed post or ordinary post to Bangalore CPC within 120 days of e-filing.

Do not courier or deliver the ITR V by hand. It will not be accepted.

File income tax returns online using the right form

The time to file your income tax returns is here. Every individual whose total income before allowing deductions under Chapter VI-A of the Income Tax Act exceeds the limit is required to furnish his returns of income.

The limit in case of individuals below the age of 65 years (other than women) is Rs 1,60,000. In case of women below the age of 65 years, the limit is Rs 1,90,000. In case of individuals who are of the age of 65 years or more at any time during the financial year 2010-11, the limit is Rs 2,40,000.

You need to file the returns on the correct form, as is applicable. The forms have been revised this year, so you need to ensure you use the current year's forms only. Or else the returns will not be accepted by the Income Tax Department.

ITR I

In lieu of the earlier Saral form, this time, the Sahaj form has been introduced. ITR I (Sahaj) is the form to be used by most individual tax payers. This is just a two-page form. This is meant for the individuals who have income from salary, property (not brought-forward loss from the previous years), and other sources (except income from winnings).

This returns form is not for an individual whose total income for the assessment year 2011-12 includes income from more than one property, income through capital gains which are not exempted from tax, income from agriculture in excess of Rs 5000, or income from business or profession.

No documents (including TDS certificates ) should be attached to this returns form.

For most individuals, ITR I will be applicable. The form has four parts. Part A is general information. Part B is for gross total income. Part C is for deductions and total taxable income. Part D is for the tax computation.

ITR II

This form is for individuals and Hindu Undivided Families (HUFs) without any income from business or profession. This form is for individuals and HUFs with income from salary, house property, capital gains, and other sources.

ITR III

This form is for individuals and HUFs who are partners in firms and not carrying out a business or profession under any proprietorship.

ITR IV or Sugam

This form is for small businessmen and commission agents. This is for individuals and HUFs with income from a proprietary business or profession.

Bank account number

While filling in the form, you should mention your bank account number to enable the Income Tax Department to make a refund in a stipulated period of time if applicable. Not mentioning the bank account number will result in a delay in refund.

Filing returns

The returns can be filed with the Income Tax Department in any of these ways:

In paper form

Electronically with a digital signature

Transmit the returns electronically

and then submit the verification of

the returns on ITR V

Bar-coded returns form

Where the returns is transmitted electronically, you should printout two copies of Form ITR V. One copy, duly signed, has to be sent by ordinary post to Post Box No 1, Electronics City Office, Bangalore 560 100. The other copy should be retained by you for your records. Only one copy of the returns form is required to be filed.

In case the returns is furnished in paper form, electronically with a digital signature, or in a bar-coded format, you should fill up the required information in the verification. Strike out whatever is not applicable. You need to ensure the verification has been signed before furnishing the returns.

E-filing income tax returns is simple, try it

You have just three more days to file your income-tax returns. If you want to do it without much bother, you should consider efiling. It's simple if you take care of a few things.

You need to go to the website incometaxindiaefiling .gov.in, and download the relevant returns form (ITR 1 to 7) based on your sources of income. For instance, if your only sources of income are salary /pension, interest income and income/loss from one house property, then you can use ITR 1.

The website explains who should use which. Select the Excel version of the form. Very importantly, enable Macros in the form. People often fail to do that because the 'Enable Macros' messaging is not very clear on the website/form. A help file that gets downloaded with the Excel form explains how to enable Macros. If Macros are not enabled, many of the required fields in the form do not perform their required functions.

Read other instructions on the website and then fill up all the mandatory fields in all the forms. Particularly ensure that you have written your PAN number correctly. Pressing the 'Calculate Tax' button on the form tells you how much tax you need to pay or how much you need to be refunded (you don't need to know anything about tax rates).

If you have taxes to pay, then these can be paid online through the incometaxindia .gov.in website. Once that's done, details of the counterfoil of the tax paid challan must be entered in the Excel form.

Pressing the 'Validate' button on top of each form tells you whether you have filled up the forms correctly. Once validated , press the 'Generate XML' button on the top right of the form, and an XML version of the form gets created on your PC.

Now go once again to the efiling website, and choose the assessment year for which you are filing (it will be AY 11-12, if you are filing for financial year 2010-11 ). You will be asked to register yourself, which again is a simple process. Once registered, use your login and password to login again, you will be asked to upload the XML file. The moment you upload and send it, you will have access to an ITR-V form, which is the acknowledgement form.

You need to take a print out of this on a laser printer (so that the barcode on it is printed properly), you need to sign it and then send it to the Centralized Processing Center (address provided on website) by ordinary post within 120 days.

"Efiling is one of the best things to have happened," says Sunil Birla, partner in chartered accountancy firm BDO India. "You can do everything from home. No running around to income tax offices. It's possible to complete the entire process in 10-12 minutes. In our firm, what took 15 people to do now takes just 3 people."

If you file online, tax refunds will also happen much faster (within three months) than if you file paper returns. But for refunds, ensure that you fill up your address, email id and bank account details accurately. As per data provided by the Centralized Processing Center that is managed jointly by the I-T department and Infosys Technologies, more than 4.28 lakh refunds for assessment years 2009-10 and 2010-11 have not happened because of wrong address or bank account details.

Easy ways to file your tax returns

Just two weeks remain for filing tax returns. Tax-payers are, therefore, busy collecting their Form 16 and meeting tax consultants to set the process of filing the returns in motion. Traditionally, tax- payers file their returns through consultants, given the technicalities and hassles associated with the process. But, over the past few years, e-tax filing has become popular, as it makes the process simple. Both offline and online tax-filing have their own advantages and disadvantages. Here is a look at how each works and what suits you the best.

Filing tax returns offline

If you are filing your return in the Sahaj form, ensure the form adheres to the requirements of the income-tax department pertaining to the font, font color, paper size, paper quality, bar code, etc. Else, the form can be rejected. And even if the form is erroneously accepted, there could be delays in processing the return. Double check if you have entered your correct PAN (permanent account number) and TAN (tax deduction and collection account number) of the employer/tax deductor with reference to the TDS certificates in Form 16/Form 16A.

Ensure that extra sheets are enclosed wherever required. "For example, the standard ITR-2 form captures details of only up to two house properties. If you own four houses, you need to enclose additional sheets to provide details of the two other houses," says Vaibhav Sankla, executive director, Adroit Tax Services. However, you should not enclose any other documents with the tax return form. "Documents, such as Form 16, Form 16A, proofs for tax benefits claimed, capital gains workings, etc, should be kept with you and not enclosed with the tax return form. Ensure that the filing date, acknowledgement number and jurisdiction are clearly stamped on the acknowledgement. If they are not clear, you should request the receiving officer to correctly write them on the acknowledgement with his signature," says Sankla.
In case you are claiming a refund, then give the correct bank account number and make sure the MICR code is mentioned correctly. Accuracy of these details will ensure a faster and hassle-free refund.

"Disclose exempt incomes such as dividends from mutual funds and long-term capital gains on listed securities. Even though the tax laws do not require you to pay tax for such income, some return forms have schedules to capture these details. Lastly, file your return with the correct IT jurisdiction. This ensures faster processing and timely refunds," says Vineet Agarwal, director - tax and regulatory services, KPMG.

Don't wait till the last week of July to e-file your return. Send the signed ITR-V form to the centralised processing centre, Bangalore, as soon as possible and resend it if you do not receive a confirmation for the one sent earlier. Lastly, don't forget the password to your account with the e-filing portal; note it down in your diary. If you are using the tax department's template, make sure you save the incomplete file on your computer's disk. If you're using a portal such as taxsmile.com or taxspanner.com, make sure you have saved your changes before logging out.

"However, beware of emails that claim to offer links to the income-tax office website. These should be carefully evaluated as they may be intended to steal sensitive personal information like credit card, bank details, etc," says Agarwal.

Issues encountered

Online: The biggest issue many tax-payers encounter is with the password for the account created on the I-T department's portal. Many forget it. The other issue is that the I-T department's e-filing website becomes almost inaccessible (due to server overload) during the last few days of July, forcing many to file their returns offline.

Offline: Long queues at the tax office are common as the July 31 deadline nears. Late processing of tax returns delays refunds.

Documents required
Typically, you need to have your Form 16 issued by your employer, Form 16A issued by banks, housing loan certificate, etc, while preparing your tax return. Some tax-payers may even need to look at their passport to see the arrival/departure days to determine their residential status in India.

Offline vs Online tax filing
E-filing is hassle free when compared with offline filing. "This year, there have been some developments that are pushing tax-payers to opt for e-filing. Firstly, the Sahaj form has too many specifications. The logic behind introducing such specifications is to facilitate easier processing by the I-T department given the increase in the volume of tax-payers in the country. Just to cite one example, the form has some colour specifications, which means the tax-payer has to look for a colour printer to take a printout of the form before submitting it. Tax-payers may find e-filing more convenient," says Ravi Jagannathan, MD & CEO of eMudhra Consumer Service.

You can e-file the return from the comfort of your home/office. The return can be e-filed at any time, on any day and from any location. Offline filing is possible only on weekdays during working hours of the I-T department. Moreover, online returns are processed faster than offline returns and the refund is also quicker. The only hassle with e-filing is that you have to send the signed ITR-V form to CPC, Bangalore. At times, one has to send the signed ITR-V form multiple times.

Tracking refund
The 'Refund Banker Scheme', which commenced from January 24, 2007, is now operational for individuals assessed all over India. Under the scheme, the refund amount will be either transferred electronically to the bank account of the taxpayer or will be sent by way of a cheque.

You can track your refund status by logging on to the NSDL-TIN website www.tin-nsdl.com and clicking on the 'Status of Tax Refunds' link then and entering your PAN and the assessment year.

E-filing: The Easier Way

It is difficult to part with your hard earned money in taxes and could even more be pinching if there is hardship in filing the return. No wonder some say that while the government taxes your earnings, filing the tax return taxes your mind!

While the thrust continues to be on simplification of income tax (IT) return, IT Department has also introduced a convenient way to file these returns online, saving the hassles of long queues and handling stacks of documents. It means filing your tax returns electronically through the internet. This is catching on fast and more and more tax payers are making use of e-returns.

With the due date for filing the IT return, i.e. 31 July, fast approaching, many people are contemplating shifting from the old fashioned method of filing paper returns to the contemporary method of electronic filling.

Pre requisite for e-filing

As a prerequisite, you are required to pay all your due taxes before you can proceed to file the IT return. Unlike the traditional process of payment of taxes in cash or cheque at the designated bank branch, you may also choose to pay taxes online using net banking facility. On successful payment of online taxes, a printable acknowledgment, similar to the challans provided by the banks, is generated. The details of the acknowledgment / challan are required to be mentioned in the IT return.

Once the taxes have been paid and all the relevant income details are available, the next step is to fill the applicable IT return form.

Selection of correct IT return form

The IT return has to be filed in the correct form which is determined as per the source of the earnings of the individual or HUF. Below is the description of various IT return forms:

Form Category of person Applicability

ITR 1 Individual o Income from Salary or Pension, and / or

o Income from One House Property (excluding loss brought forward from previous years), and / or

o Income from Other Sources (Excluding Winning from Lottery and Income from Race Horses.

ITR 2 Individual / HUF Where total income does not include any income under head " Profits and Gains of Business or Profession"

ITR 3 Individual / HUF Individual / HUF who is a partner in a firm and where income chargeable under head "Profits and Gains of Business or Profession" does not include any income other than income by way of interest, salary, bonus, commission or remuneration received from the firm

ITR 4 Individual / HUF Where income is being derived from business or profession under a proprietorship

You can access the website www.incometaxindia.gov.in wherein all the tax return forms and utilities to file online return along with proper instructions are available.

The user may download the return preparation software for the selected form from the IT department website or may alternatively use the software available in the market for this purpose.

The user will then need to input his income / tax details in the IT form. The IT form should then be verified using the tools available therein.

The forms require personal information like the name, address, PAN, date of birth etc details of tax payment challans, etc for your income earned during the year.

Procedure for filing your IT Return

The process of e-filing begins by accessing the website www.incometaxindia.gov.in

Every new user has to register his Permanent Account Number (PAN) at this website and create her / his account.

An automated link is sent to the e-mail address mentioned at the time of registration. The account at the IT website can only be activated by clicking the link received via email.

An XML file can be generated using the ITR form downloaded from the IT website on just click of a button. The generated xml file then needs to be uploaded on the webpage by logging in to the website.

Successful Completion

On successful upload, an acknowledgement in Form ITR V is generated. The acknowledgment is also automatically emailed to the e-mail address mentioned in the tax return form. This is required to be printed and signed manually. Alternatively, the return may also be filed using digital signatures. The signed acknowledgement has to be sent to the Central Processing Centre, Bangalore by ordinary post within 120 days of filing the return online.

The e ase from E -filing

With this new method of filing the return, there is no constraint on space and time as the return can be filed from anywhere in the world provided the internet facility is available. So, even if the return is being filed on the last day, one need not worry about waiting in a long queue to submit the form, thereby saving time and effort.

Moreover, it offers great accuracy as the calculations are processed electronically. In case any error is observed while filing the return, the same can be revised easily. The advantages with e-filing are far greater than its disadvantages and e-filing will be a favoured option in the years to come.